Michael and Mary Ellen Fox, who run a family foundation in
their names, are among those philanthropists who consider politicking an
important part of their work. Michael, chairman and founder of ME Fox & Co.,
a beverage distributor in San Jose, Calif., says the IRS confusion did not
discourage him when his foundation helped Jerry Doyle, president of EMQ Children
and Family Services, petition the California Assembly to provide funds for
treating emotionally and mentally challenged children.Fox contributed more
than money. “Jerry and I walked the halls of Sacramento for years to get
government support for EMQ’s program,” he recalls. Fox introduced Doyle to a
prominent California legislator, Jim Cuneen, who later sponsored a provision in
the budget for the children’s services in the state assembly. “Lobbying has
enabled us to move from program to policy,” Doyle explains. “It’s allowed us
to impact so many more kids than otherwise would have been possible.” Since
Fox and Doyle began their lobbying efforts in the early 1990s, government
funding for the organization has increased annually—nearly tripling from $17
million in 1999 to more than $46 million in 2003. Audrey Alvarado,
executive director of the National Council of Nonprofit Associations in
Washington, warns that even though the IRS recommendation relieves foundations
of the burden of auditing grant recipients to learn if they engage in lobbying,
it does not absolve them of all responsibility. “A message has been sent through
the community of foundations that they need to be vigilant about making sure
their funds are being used in a lawful manner,” she says. Foundations should
request a copy of the budget proposed for their grants, and monitor the annual
reports, financial statements and press releases of their grant
recipients.
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